TORONTO, Nov. 9, 2017
/CNW/ - Medical Facilities Corporation ("Medical Facilities,"
"MFC," or the "Company") (TSX: DR), today reported its financial
results for the three and nine month periods ended September 30, 2017. All amounts are
expressed in U.S. dollars unless indicated otherwise.
Third Quarter Summary
(compared to three months ended
September 30, 2016)
- Revenue increased by 2.2% on a same-facility1 basis
to $79.6 million from $77.9 million and by 12.9% on a consolidated
basis to $89.0 million from
$78.8 million, despite one less
business day in the comparable quarter
- Surgical cases increased by 5.2%
- EBITDA2 increased by 4.1% on a
same-facility1 basis to $20.3
million from $19.5 million,
but declined by 1.4% to $19.3 million
from $19.6 million on a consolidated
basis
- Cash available for distribution2 of Cdn$12.3 million, up 17.2% as compared with
Cdn$10.5 million
- Paid monthly dividends of C$0.09375 per share, or C$1.125 per share on an annualized basis
- Payout ratio2 of 70.7% as compared with 83.1%
- Entered into an agreement with Ambulatory Innovation Associates
to establish an urgent care center at the Company's Arkansas
Surgical Hospital in Little Rock,
Arkansas
Nine Month Summary
(compared to nine months ended
September 30, 2016)
- Increased revenue by 5.3% on a same-facility1 basis
to $242.8 million from $230.6 million and by 18.4% to $274.1 million from $231.5
million on a consolidated basis
- Increased EBITDA2 by 5.3% on a
same-facility1 basis to $61.4
million from $58.3 million and
by 7.1% to $62.6 million from
$58.4 million on a consolidated
basis
- Cash available for distribution2 of Cdn$34.9 million, up 6.2% as compared with
Cdn$32.9 million
- Payout ratio2 of 74.9% as compared with 79.6%
Subsequent to the quarter
- Appointed Robert O. Horrar as
President and CEO of MFC
"We are pleased with our same-facility performance in the
quarter, along with the growth in surgical cases. Both of these
demonstrate the leading positions our facilities hold in their
communities and the benefits that come from achieving consistently
high quality and patient satisfaction scores," said Robert O. Horrar, President and CEO of Medical
Facilities. "We remain focused on executing our long-term strategy
to achieve both organic and acquisitive growth and are working with
each facility to ensure they have the support they need to
succeed."
As at September 30, 2017, the
Company had consolidated net working capital of $75.4 million, including cash and cash
equivalents and short-term investments of $63.1 million and accounts receivable of
$49.1 million, compared with net
working capital of $74.0 million,
including cash and cash equivalents and short-term and long-term
investments of $67.6 million, and
accounts receivable of $61.1 million,
as at December 31, 2016. Long-term
debt at the Centers' level, including the current portion, was
$66.5 million and the corporate
credit facility was $47.8 million as
at September 30, 2017 compared with
$76.9 million of total long-term debt
at the Centers' level and the corporate credit facility of
$47.8 million as at December 31, 2016.
Medical Facilities' complete third quarter 2017 financial
statements and management's discussion and analysis will be issued
and filed on SEDAR at www.sedar.com on Thursday, November
9, 2017 and will be available on the same day on Medical
Facilities' website at www.medicalfacilitiescorp.ca.
Notice of Conference Call
Management of Medical
Facilities will host a conference call today, Thursday, November
9, 2017 at 8:30 am ET to discuss its third quarter
2017 financial results. You can join the call by dialing
647.427.7450 or 1.888.231.8191. A taped replay of the conference
call will be available until Thursday, November 16, 2017 by
calling 416.849.0833 or 1.855.859.2056, reference number 99392457.
A live audio webcast of the call will be available at
http://bit.ly/2xCUPzA.
_____________________________
|
1
Same-facility excludes the operating results from Unity Medical and
Surgical Hospital and Prairie States Surgical Center which were
acquired on September 23, 2016 and October 3, 2016
respectively.
|
2 EBITDA,
cash available for distribution and payout ratio are non-IFRS
financial measures. While Medical Facilities believes that these
measures are useful for the evaluation and assessment of its
performance, they do not have any standard meaning prescribed by
IFRS, are unlikely to be comparable to similar measures presented
by other issuers, and should not be considered as alternatives to
comparable measures determined in accordance with IFRS. For further
information on these non-IFRS financial measures, including a
reconciliation of each of these non-IFRS financial measures to the
most directly comparable measure calculated in accordance with
IFRS, please refer to Medical Facilities' most recently filed
management's discussion and analysis, available on SEDAR at
www.sedar.com.
|
Financial
Results
|
For the three
months ended
|
For the nine
months ended
|
September
30
|
September
30
|
(thousands of U.S.
dollars, except per
share amounts and where otherwise noted)
|
2017
|
% change
|
2016
|
2017
|
% change
|
2016
|
Facility service
revenue
|
88,974
|
12.9%
|
78,806
|
274,063
|
18.4%
|
231,479
|
Consolidated
operating expenses
|
76,542
|
18.4%
|
64,624
|
232,118
|
23%
|
188,708
|
Income from
operations
|
12,432
|
(12.3%)
|
14,182
|
41,945
|
(1.9%)
|
42,771
|
|
Finance costs (net
interest expense)
|
3,733
|
28.6%
|
2,902
|
11,404
|
27.5%
|
8,947
|
|
Finance costs
(changes in values of
derivative instruments and gain/loss on
foreign currency)
|
8,931
|
(33.3%)
|
13,387
|
(2,497)
|
(105.9%)
|
42,424
|
|
Income tax expense
(recovery)
|
(2,397)
|
38.6%
|
(1,730)
|
4,010
|
(141.9%)
|
(9,578)
|
Income (loss) for the
period from continuing
operations
|
2,165
|
674.3%
|
(377)
|
29,028
|
2,868.1%
|
978
|
|
Attributable
to:
|
|
|
|
|
|
|
|
|
Owners of the
Corporation
|
(3,560)
|
47.9%
|
(6,836)
|
10,092
|
155.0%
|
(18,360)
|
|
|
Non-controlling
interest
|
5,725
|
(11.4%)
|
6,459
|
18,936
|
(2.1%)
|
19,338
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
|
Basic
|
(0.11)
|
|
(0.22)
|
0.33
|
|
(0.59)
|
|
|
Diluted
|
(0.11)
|
|
(0.22)
|
0.33
|
|
(0.59)
|
|
|
|
|
|
|
|
Cash available for
distribution (C$)
|
12,318
|
17.2%
|
10,510
|
34,934
|
6.2%
|
32,903
|
Distributions
(C$)
|
8,713
|
(0.2%)
|
8,732
|
26,176
|
(0.1%)
|
26,197
|
|
|
|
|
|
|
|
Cash available for
distribution per common share (C$)
|
0.40
|
17.6%
|
0.34
|
1.13
|
6.6%
|
1.06
|
Distributions per
common share (C$)
|
0.28
|
|
0.28
|
0.84
|
|
0.84
|
|
|
|
|
|
|
|
Payout
ratio
|
70.7%
|
(14.9%)
|
83.1%
|
74.9%
|
(5.9%)
|
79.6%
|
|
|
|
|
|
|
|
Income (loss) for the
period from
continuing operations
|
2,165
|
|
(377)
|
29,028
|
|
978
|
Income tax expense
(recovery)
|
(2,397)
|
|
(1,730)
|
4,010
|
|
(9,578)
|
Finance
costs
|
12,664
|
|
16,289
|
8,907
|
|
51,371
|
Depreciation and
amortization
|
6,916
|
|
5,440
|
20,623
|
|
15,670
|
EBITDA
|
19,348
|
(1.4%)
|
19,622
|
62,568
|
7.1%
|
58,441
|
Normal Course Issuer Bid ("NCIB")
The Company
repurchases its common shares in the open market. By repurchasing
and cancelling its common shares, Medical Facilities reduces the
total amount of dividends payable, resulting in cash savings for
the Company. The remaining shareholders also benefit from the NCIB
as the distributable cash per share increases. During the three
months ended September 30, 2017, the
Corporation purchased 35,600 of its common shares for $0.4 million. During the nine months ended
September 30, 2017, the Corporation
purchased 95,600 of its common shares for $1.1 million. During the nine months ended
September 30, 2016, the Corporation
purchased 67,500 of its common shares for $0.6 million under a previous normal course
issuer bid, with none of the purchases taking place in the three
months September 30, 2016.
As at September 30, 2017, the Company had 30,950,345
common shares outstanding.
To view Medical Facilities Q3 2017 financial statements and
notes, please click here:
http://files.newswire.ca/940/MedFacQ32017.pdf
About Medical Facilities
Medical Facilities owns
controlling interests in five specialty surgical hospitals located
in Arkansas, Indiana, Oklahoma and South
Dakota, as well as an ambulatory surgery center in
California. The specialty
hospitals perform scheduled surgical, imaging, diagnostic and other
procedures, including primary and urgent care, and derive their
revenue from the fees charged for the use of their facilities. The
ambulatory surgery center specializes in outpatient surgical
procedures, with patient stays of less than 24 hours. In addition,
Medical Facilities owns controlling interest in a diversified
healthcare service company located in Oklahoma City that provides third-party
business solutions to healthcare entities such as physician
practices, facilities, and insurance companies. Medical Facilities
is structured so that a majority of its free cash flow from
operations is distributed to the holders of its common shares in
the form of dividends. For more information, please visit
www.medicalfacilitiescorp.ca.
Caution concerning forward-looking
statements
Statements made in this news release, other
than those concerning historical financial information, may be
forward-looking and therefore subject to various risks and
uncertainties. Some forward-looking statements may be
identified by words like "may", "will", "anticipate", "estimate",
"expect", "intend", or "continue" or the negative thereof or
similar variations. Certain material factors or assumptions are
applied in making forward-looking statements and actual results may
differ materially from those expressed or implied in such
statements. Factors that could cause results to vary include
those identified in Medical Facilities' filings with Canadian
securities regulatory authorities such as legislative or regulatory
developments, intensifying competition, technological change and
general economic conditions. All forward-looking statements
presented herein should be considered in conjunction with such
filings. Medical Facilities does not undertake to update any
forward-looking statements; such statements speak only as of the
date made.
SOURCE Medical Facilities Corporation